Savings Account42074 views
State Bank of India (SBI) being one of the country’s oldest and trusted banks has always worked for the welfare of its customers. All the products and services are designed to cater the needs of the masses. Recently, the bank has introduced a new savings account scheme that is especially for the poorer sections of the society. The initiative is taken in order to motivate the underprivileged to open a savings account with no minimum as well as maximum deposit amount limit. To ensure that maximum people enroll, no charges or fees will be charged by SBI. The customer can make transactions using withdrawal forms at all SBI branches or through the basic RuPay ATM-cum-Debit card which will be issued free of cost with no annual maintenance charge.
Table of Contents
- 1 SBI BSBD – Small Account
- 2 SBI Basic Savings Bank Deposit (BSBD) Account Interest Rate
- 3 SBI BSBD Minimum Account Balance
- 4 How to convert SBI Savings Account to SBI BSBD Account
SBI BSBD – Small Account
SBI BSBD small account can be opened by people who are above the age of 18 years. This account type is especially for people who do not have officially valid documents but want to open a savings account. Since the bank is allowing people to open a bank account without KYC, there are a few restrictions as well. Also, if the account holder can convert this account to a regular savings account by submitting KYC in the future. This account is majorly for those who do not have enough money to maintain minimum balance in a savings account. Read below the features of this account.
- Minimum balance required for the account is Nil.
- Maximum balance limit is INR 50,000
- Interest rate as applicable on SBI Regular Savings Bank account
- Basic Ru-Pay Debit/ATM card.
- No annual maintenance charges.
- All transactions and deposits in the account are free of cost.
- Aggregate of all withdrawals and transfers in a month should not be more than INR 10,000
- If the balance exceeds INR 50,000 or total credit in the account exceeds INR 1,00,000 in a year, no further transaction will be permitted until the full KYC procedure is completed.
- Maximum 4 withdrawals in a month are allowed.
- Foreign Remittances are not allowed to be credited into a Small Account unless the identity of the client is fully established through the production of officially valid documents.
- A Small Account shall remain operational initially for 12 months and thereafter for a further period of 12 months if the holder of such an account provides evidence before the Bank of having applied for any of the officially valid documents within twelve months of the opening of account, with the entire relaxation provisions to be reviewed in respect of the said account after twenty four months.
- If KYC documents are not submitted to the Bank within 24 months of opening of the account, no further transaction other than for closure of account will be permitted.
- Conversion of Small account to regular Savings Bank account or BSBD account (at the option of the customer) would be done by the home branch manually on full compliance with KYC requirement. After such conversion, the same account number will continue.
SBI Basic Savings Bank Deposit (BSBD) Account Interest Rate
|Account Balance||Interest rate (p.a.)|
|Up to ₹1 crore||3.50%|
|Above ₹1 Crore||4%|
Fees and Charges
- No charges on issuance of Basic RuPay ATM-cum-Debit card
- No annual maintenance charges
- No fee for the deposit/collection of cheques drawn by Central/State Government
- No charge on activation of inoperative account
- No charges on account closure
- No charges on the receipt of money via electronic channels like RTGS or NEFT
- No charges on four transactions in a month
SBI BSBD Minimum Account Balance
The account can be opened with any amount and there is no minimum limit prescribed by the bank. The customer can deposit any amount as per his/her convenience. Also, there is no cap on the upper limit. Unlike other savings account, the customer does not have to maintain a minimum balance and can operate the account at zero balance.
SBI BSBD Minimum Balance Penalty
On maintaining no balance in the account, the customer does not has to pay any penalty. Hence, no need to worry about if there is no balance in your account.
SBI BSBD Account Opening Documents
Anyone with valid KYC documents can open this savings account at the nearest SBI branch. The documents required to open an account are as follows:
- Identity Proof- Aadhaar Card/Voter ID Card/PAN Card/Driving License
- Address Proof- Aadhaar Card/Voter ID Card/Driving License
- 2 passport size photos
SBI BSBD Account Opening Form
To open the Basic Savings Account at SBI, the customer has to fill up the account opening form which is available at the bank branch.
Just like SBI Fixed Deposit, the customer can open this savings account singly or jointly. Also, the customer can not have any other SBI Savings Bank Account if he/she has a Basic Savings Bank Deposit Account. Once this account is operational, the already existing Savings Bank Account will have to be closed within 30 days.
- Any other SBI Savings Bank Account holders can not open SBI Basic Savings Bank Deposit Account
- If anyone already has a savings account, then it has to be closed within 30 days of opening the BSBD account
- The savings can also be converted into BSBD account on request without any fee
- Maximum 4 withdrawal in a month including ATM withdrawals at any SBI ATM, other Bank’s ATM, transactions through other modes including RTGS/NEFT/Clearing/Branch cash withdrawal/transfer/internet debits/standing instructions/EMI, etc.
- No further debit allowed post the usage of 4 withdrawals in a month
- Zero balance account with no charges involved
How to convert SBI Savings Account to SBI BSBD Account
Almost every Indian has a savings bank account at State Bank of India (SBI). But, now that the bank is offering BSBD account, regular savings account holders of the bank want to transfer it to basic saving account. Read below the steps:
- Submit a written application to your SBI Branch Manager requesting for the closure of your regular savings account.
- Once the application is accepted, your regular SBI Savings Account will be closed.
- You can then open a SBI BSBD Account.
ATM Withdrawal Rules for Other SBI Savings Account Holders
- 8 free ATM transactions in a month across metro cities. These transactions include 5 at SBI ATMs and 3 at other bank ATMs.
- 10 free ATM monthly across non-metro cities – 5 each at SBI and other bank ATMs.
- Transactions beyond the permissible free limit will incur a charge of INR 20 along with 18% GST.
- On transactions getting declined owing to insufficient balance, a charge of INR 20 plus tax will be levied.
- A charge of INR 22 plus tax will be incurred on each cardless withdrawal at ATMs.